🥈PHAME Protocol V2

Public Beta Test

PHAME V2 Transition

We are transitioning to V2 of PHAME Protocol.

The V2 PHAME protocol code base is already audited by Certik (report will be published soon) and live on the Pulsechain Mainnet, where it has been running for weeks, tested by the core team.

We will run a public beta for another week or two and encourage those of you who wish to help to test the UI at your own risk.

V1 will continue to operate indefinitely. We will eventually wind down V1 once it is no longer needed, but for now, please continue to use it as normal. We will give you ample notice before any changes.

PHAME tokens are completely unaffected by this transition. You will now receive staking revenue from both V1 and V2. You do not need to take any action.

A new form of PHLP called “PHLPV2” will be created. It will have a totally different risk profile and makeup compared to “PHLP” V1.

Why are we doing a V2?

Since we launched PHAME in September 2023, we have learned a lot. Additionally, the broader RH ecosystem has evolved considerably. From the moment we launched we have been working on a V2 Update.

Objectives

At a high level, we are seeking to achieve the following with V2:

1. Increase trading capacity and overall fees (NGU).

2. Fix errors made by GMX in their V1 that we have uncovered.

3. Reduce reliance on RH coins for our general success and diversify our income streams by adding more coins.

4. Protect the protocol against malicious actors, allowing looser constraints for good users.

Changes

From a technical standpoint, we have made the following changes:

1. User-specific profiles and limits: In V2, you will be rewarded with additional capacity for trading and building your relationship with us. This will be discussed in more detail later. Additionally, dishonourable behavior will be banned or disincentivized, allowing us to run much greater long and short limits in aggregate. The overwhelming majority of users, perhaps 99%, are honorable. We will now be able to limit or ban those that are dishonorable, reducing the risk of malignant whales or even an OA-style wallet from attacking the protocol. Honorable whales will be rewarded with additional capacity to make larger bets while still allowing smaller users to be able to trade.

2. Different Rates for Different Risk Tokens: V2 will have separate long/short borrow rates and open/close fees for different tokens, allowing us to better balance long/short interests over different tokens. This also enables us to charge much lower fees for blue-chip coins like BTC or WETH, making them commercially more viable, and higher fees for riskier coins (we may potentially add more Pulsechain coins). V1 treated each token the same, making WETH and BTC trades less viable.

3. Fixed GMX Protocol Accounting Bug: We have fixed a GMX protocol accounting bug that has forced us to greatly reduce the amount of Hex shorting.

4. Dynamic Minimal Profit Taking Time Based on Position Size: In V1, we had to increase minimum profit time due to manipulators. These manipulators need size to make their trades profitable. Now, smaller trades can have considerably shorter minimum profit times, enabling more short-term trades and more revenue. Furthermore, different currencies can have different minimum profit time.

5. Adding SOL (or other) Tokens: We will add SOL or other tokens to increase overall trading volume and fees. We believe this model can also potentially make us competitive on other chains, though no determination has been made at this stage.

6. Smoother UI Experience: We have improved the UI for a smoother overall experience, while maintaining a similar look.

Profile Points:

We have introduced a new Badges page in stats site where you can see all the active wallets' profiles. Each wallet will have a profile points that is based on its 90-day trading volume as well as its TVL of PH tokens. The points will be updated weekly and is only an indicator (not a guarantee) of user profile status. In general, higher points increases the chance of an address being upgraded to higher profile.

Points Calculation: wallet points = 90day volume (V1+V2) * ( 10000+staked phame * 0.8 + phux tvl * 0.6 + staked phiat * 0.4 + prime phux * 0.3) , where phux tvl includes LP and Staking pools of Pareto Pool and Phorgy Pool.

Min Profit-taking lock time:

For PHAME protocol v2, to determine the minimal profit-taking lock time you need to consider a few factors:

1) Token base size: they are basically the standard user profile token limit, see below table:

Token	Long ($)	Short ($)
PLS	8000	3000
PLSX	4000	1500
HEX	4000	1500
wBTC	4000	3000
wETH	4000	3000
wSOL	4000	3000

2) Minimal price movement: for RH tokens it is 100%, for non-RH tokens it is 0.75%.

3) Base minimal profit-taking lock time (base-minProfitTime): for RH tokens it is 45 mins, for non-RH tokens it is 30 mins.

4) If the token price moves more than the minimal price movement, then there is no minimal profit-taking lock time.

Otherwise the formulas for minimal profit-taking lock time (minProfitTime) are:

• if trade size > base size, minProfitTime = base-minProfitTime * (1 + (actual size / base size - 1) * p), where for RH tokens, p = 0.6; for non-RH tokens, p = 0.3

• if the trade size <= base size, for RH tokens, minProfitTime = base-minProfitTime * actual size / base size

• if the trade size <= base size, for non-RH tokens, for non-RH tokens, minProfitTime = base-minProfitTime